More good news for September house prices

The rising value of sterling and lower bonuses in the City of London this year may have contributed to the relative weakening of growth in the capital.

This month saw a significant contrast across the leading indicators of house price growth. In the same month the steepest ever fall in house prices recorded on one index and a sixth consecutive increase in prices on another.

The eight indices tracked by the Poll of Polls lead to the following two conclusions: Firstly, the pace of house price growth has indeed deteriorated since the resumption of growth after the recent slump. Secondly, any falls in house prices over recent months have been inconsistent and lack the pace associated with the beginning of the recession in 2008.

Whether or not the sluggish pace of house price growth continues, deteriorates or improves is still highly uncertain. Further light on the extent and location of cuts to public expenditure will be revealed on 20 October. The outcome of this widely anticipated event could be to prompt the Bank of England to pick up where it left-off with its quantitative easing programme almost a year ago.

Robert Bartlett, Chesterton Humberts’ CEO, said:

“The low level of transactions throughout the country makes it extremely difficult to see trends although the Chesterton Humberts/cebr House Price Poll of Polls gives us a better indication than any single index of the current market situation.

“The continuing drought in mortgage finance means that a traditionally quiet August seems to be heading straight into a quiet holiday period without the usual bustle of an autumn market. Overall, there is still no sign of any dramatic downturn in values, although the low trading activity levels may be skewing the outlook for London especially.”

“Lack of finance is trapping both buyers and sellers and once again leading to a rise in the numbers of “accidental landlords”, sellers who are unable to achieve desired prices and are therefore taking advantage of the tight lettings market.”

Douglas McWilliams, Chief Executive of CEBR, said:

“The extent to which the UK fiscal crisis has been addressed will become more obvious at the end of this month when firm and fixed spending budgets are set for each government department for the next four years. The completion of the change in policy from fiscal stimulus to monetary stimulus is therefore paramount. The latest economic data add to pressure on the Bank of England to resume its programme of asset purchases at some stage over the next few meetings. This will help to lower borrowing costs further and should provide further reassurance to otherwise hesitant buyers.”

4 thoughts on “More good news for September house prices”

What a lot of stupid media hype. The prices are going down and have done for many months in fact worse lately some properties have been for sale for two three years abd having dropped prices still for sale,. I am sure to any lay person this iis a downward market, and should be property speculaters have been the buyers not the British man to give his family a home. Wake up think regards wages to prices no contest. aaafaoreign buyers have alson pushes up prices with secound homes in the London area. I am disgusted why media reps can not stop trying to hike up prices. Please allow the ordinary man an Woman be able to afford to buy a roof over their heads.

At last, I can sleep secure in the knowledge that over my lifetime I will be giving more of my hard-earned cash to the bank. They need it, the poor dears; I hear some of their employees are in poverty due to the tiny bonuses being paid these days.

I only hope the price of water increases too, so that people have to borrow money to pay for that; that would inject more money into the economy and could be the key to preventing the double-dip.